OSK Holdings” 2015 pre-tax profit surges to RM604 million

KUALA LUMPUR, Feb 29 — OSK Holdings Bhd’s pre-tax profit surged to RM604.72 million for the 2015 financial year compared with RM215.61 million in 2014.

Annual revenue jumped to RM760.73 million from RM59.92 million before.

In a filing to Bursa Malaysia, OSK said the 2015 pre-tax profit comprised RM107.78 million profits contributed by all business segments and negative goodwill arising from the acquisitions of OSK Property Holdings Bhd and PJ Development Holdings Bhd.

It also consists of the acquisition of additional interests in RHB Capital Bhd of RM12.09 million and share of profits of RM121.70 million” it added.

Pre-tax profit for the fourth quarter expanded to RM103.58 million from RM57.16 million posted for the same quarter in 2014, while revenue jumped to RM458.57 million from RM15.664 million, previously.

On the outlook, it said the group’s main on-going property development projects such as Pan’gaea in Cyberjaya, Emira (Shah Alam), Windmill Upon Hills (Genting Permai), Bandar Puteri Jaya (Sungai Petani), You City (Cheras), and Harbour Place (Butterworth) were progressing well and expected to contribute to the group’s earnings in 2016.

The construction division is expected to contribute positively with projects on hand and the property investment segment is expected to generate profitable rental yields.

OSK said the industrial products division, which includes manufacturing and trading of cables, wires and Integrated Building System (IBS) building materials, were expected to remain profitable in 2016.

However, the growth rate will be moderate due to the softening of the property market resulting in weaker demand.

On the management of hotels, resorts and timeshare businesses, it seeks to leverage on the weak ringgit to attract inbound foreign tourists and to promote domestic travel, while the capital financing and investment holding businesses are expected to achieve profitable results for the group, it said.